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May net Chinese steel exports jumped 14.8% to 3.88 million tonnes (mt) from 3.38 mt in April, despite a 2.2% decline in Chinese steel production to 1.98 mtpd from April’s record 2.02 mtpd.

The combination of near-record production in the face of waning steel demand is leading to recent record export levels and unlike mid-2010 when Chinese exports were hitting similar high levels, the rest of the world economies are already struggling with weaker steel demand.

May apparent steel consumption fell 3%, outpacing the 2.2% production decline.  Reflecting these weaker demand fundamentals, industry leader Baosteel overnight announced a 3.5% price cut for hot-rolled and cold-rolled sheets and a 1.8-7.0% price reduction for coated sheet for July shipments.

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